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An Assignment On
Trade Union Effect On Economic Performance – in Case of
Garment Industry in Bangladesh.

Course Tittle: Labour Economics

Course Code: ECO-325
Date of submission: 29-04-2021

Submitted to Submitted by
Lutfunnahar Lutfa Onika Jahan Akondi
Lecturer ID:17122418
Department of Economics Session : 2016-2017

Department of Economics
Jatiya Kabi Kazi Nazrul Islam University
Trishal, Mymensingh-2220
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Introduction:
A trade union is an organization of worker who have come together to achieve
common goals such as protecting the integrity of its trade, improving safety
standards, achieving higher pay and benefits such as health care and retirement,
increasing the number of employees an employer assigns to complete the work,
and better working condition. Trade unions are the controller of the labor force of
an industry which works for the betterment of the country’s trade by ensuring the
right of the labor force. The most common purpose of these associations or
unions is "maintaining or improving the conditions of their employment. This may
include the negotiation of wages, work rules, complaint procedures, rules
governing hiring, firing and promotion of workers, benefits, workplace safety and
policies. Unions may organize a particular section of skilled workers like craft
unionism a cross-section of workers from various trades or attempt to organize all
workers within a particular industry. Trade unions traditionally have a constitution
which details the governance of their bargaining unit and also have governance at
various levels of government depending on the industry that binds them legally to
their negotiations and functioning. Trade unions try to develop close working
relationships with employers. Globalization businesses are expanding rapidly for
that reason the workforce in the industries are increasing hugely Trade unions are
the only way to manage, compliant, and control the labor force. Lots of objectives
are there to organize trade unions. In perspective of Bangladesh the immediate
objectives and activities of trade unions include protection and promotion of the
interests of their members. Regulating the relations between workers and
employers or workers and workers or employers and employers is another
objective of trade unions. Trade Union has become a necessary part but trade
union can’t run properly due to various reasons. These are lack of consciousness,
lack of utility, lack of knowledge, political influence division of trade union. The
rate of unionization has increased in the RMG sector, trade union affiliation is low
in Bangladesh compared to many other developing countries. The main reasons
for this are the fall in employment in previously highly organized sectors, rise of
the service sector and increasing flexible types of employment relationships.
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Objectives of the study:

The study has the following objectives

1. To understand the philosophy and concept of RMG sector and Trade

Union;
2. To focus on present scenario of RMG sector and Trade Union policy in
Bangladesh.

3. To suggest some possible solutions for developing and improving the trade
union policy in Bangladesh.

4. To identify the effects of trade union in RMG sector in Bangladesh.

Methodology:
Given the nature of the present study, it was required to collect data from the
secondary sources. The authors were always careful of the objectives of the study
and collected data accordingly to achieve those objectives. Secondary data were
collected from research studies, books, journals, newspapers and ongoing
academic working papers. The collected data may be processed and analyzed in
order to make the present study useful to the practitioners, researchers,
planners, policy makers and academicians of the concern area.
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What is trade union:

A trade union is an organization of worker who have come together to achieve
common goals such as protecting the integrity of its trade, improving safety
standards, achieving higher pay and benefits such as health care and retirement,
increasing the number of employees an employer assigns to complete the work,
and better working condition. Trade unions are the controller of the labor force of
an industry which works for the betterment of the country’s trade by ensuring the
right of the labor force. The trade union, through its leadership, bargains with the
employer on behalf of union members and negotiates labor contract with
employers. The most common purpose of these associations or unions is
"maintaining or improving the conditions of their employment. This may include
the negotiation of wages, work rules, complaint procedures, rules governing
hiring, firing and promotion of workers, benefits, workplace safety and policies.
Unions may organize a particular section of skilled workers like craft unionism a
cross-section of workers from various trades or attempt to organize all workers
within a particular industry. Trade unions traditionally have a constitution which
details the governance of their bargaining unit and also have governance at
various levels of government depending on the industry that binds them legally to
their negotiations and functioning. Trade unions try to develop close working
relationships with employers. Globalization businesses are expanding rapidly for
that reason the workforce in the industries are increasing hugely. To maintain the
whole work force alone by the management is a very tough job. Trade unions are
the only way to manage, compliant, and control the labor force. Lots of objectives
are there to organize trade unions. ince the concept of trade unions had not
taken root, the working and living conditions of workers were abysmal; they
would resort to strikes in the fight for improved wage rates. he most common
purpose of these associations or unions is "maintaining or improving the
conditions of their employment. This may include the negotiation of wages, work
rules, complaint procedures, rules governing hiring, firing and promotion of
workers, benefits, workplace safety and policies. Unions may organize a particular
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section of skilled workers like craft unionism a cross-section of workers from

various trades or attempt to organize all workers within a particular industry.

History of trade union:

A trade union (or a labor union in American English), often simply called a union,
is an organization of workers who have come together to achieve many common
goals, such as protecting the integrity of their trade, improving safety standards,
and attaining better wages, benefits (such as vacation, health care, and
retirement), and working conditions through the increased bargaining power
wielded by the creation of a monopoly of the workers. Trade unions typically fund
the formal organization, head office, and legal team functions of the trade union
through regular fees or union dues. The delegate staff of the trade union
representation in the workforce is made up of workplace volunteers who are
appointed by members in democratic elections.
The trade union, through an elected leadership and bargaining committee,
bargains with the employer on behalf of union members (rank and file members)
and negotiates labour contracts (collective bargaining) with employers. The most
common purpose of these associations or unions is "maintaining or improving the
conditions of their employment".[1] This may include the negotiation of wages,
work rules, occupational health and safety standards, complaint procedures, rules
governing status of employees including promotions, just cause conditions for
termination, and employment benefits.
Unions may organize a particular section of skilled workers (craft unionism),[2] a
cross-section of workers from various trades (general unionism), or attempt to
organize all workers within a particular industry (industrial unionism). The
agreements negotiated by a union are binding on the rank and file members and
the employer and in some cases on other non-member workers. Trade unions
traditionally have a constitution which details the governance of their bargaining
unit and also have governance at various levels of government depending on the
industry that binds them legally to their negotiations and functioning. Trade union
as per Trade Union Act 1926 “Any combination formed primarily for the purpose
of regulating the relations between workmen and employers or workmen and
work manor employers and employers or for imposing restrictive conditions on
the conduct of any trade or business and includes any federation of two or more
trade unions.”
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Background of RMG sector in Bangladesh:

Bangladeshi Garment Industry is the largest industrial sector of the country.
Though the history of Readymade Garment Industry is not older one but
Bangladeshi clothing business has a golden history. After industrial revolution in
the west they were busy with technological advancement & started outsourcing
of readymade garments to meet up their daily demands. Many LDC’s took that
chance & started readymade garment export at that markets. The history of the
garment industry dates back to 1977 when the first consignment was exported to
then West Germany by Jewel Garments. Several factors account for the
outstanding successes of the RMG industry in Bangladesh. At the same time The
tremendous success of readymade garment exports from Bangladesh over the
last two decades has surpassed the most optimistic expectations. Today the
apparel export sector is a multi- billion-dollar manufacturing and export industry
in the country. Some cases about accident of garment sectors in Bangladesh
(Contd.) Rana Plaza tragedy The collapse of an eight-story garment factory in Rana
Plaza on the outskirts of Dhaka on April 24th killed at least 1,135 people and
injured many more. It was probably the worst industrial accident in South Asia
since the Bhopal disaster in 1984, and the worst ever in the garment industry.
Some cases about accident of garment sectors in Bangladesh Tazrin Fashion The
2012 Dhaka fire broke out on 24 November 2012, in the Tazreen Fashion factory
in the Ashulia on the outskirts of Dhaka, Bangladesh. At least 117 people were
confirmed dead in the fire, and over 200 were injured, making it the deadliest
factory fire in the nation's history. Principles of Trade Unionism Trade unions
function on the basis of three fundamental principles.
The foundation of the textile sector was first established in the 60th decade of the
19th century. For the first time, the industry exported shirts (Mercury shirts) to
the European market in 1965-66, which was produced from Karachi. In the latter,
9 exporting industries were available in 1977-78. The three largest industries at
that time were Riaz Garments, Jewel Garments, and Paris Garments. Among
those, Riaz Garments was the most famous and oldest industry at that time.
In the earlier stage, Riaz Garments of Mohammad Reaz Uddin started its business
with some tailoring shop in the name of Riaz store. Later, the name turned into
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Riaz Garments from Riaz store in 1973, and from 1978 the company started
exporting products in the abroad by exporting 1 million pieces of shirts in the
South Korean Company named “Olanda”. “Desh Garments” is another pioneer of
the Bangladesh RMG sector. In 1979, Desh Garments started a joint project with
the South Korean company “Daiyuu”.
At the same time, several garments were introduced such as-Stylecraft limited by
Shamsur Rahman, Aristocraft Limited by AM Subid Ali, Azim Group by Engineer
Mohammad Fazlul Azim, and Sunman Group by Major (Retd) Abdul Mannan.
By following the beginners of the RMG sector, some other discreet and hard-
working entrepreneurs started their RMG business in the country. From there, the
RMG sector of Bangladesh was developing day by day and not needed to look
back. Though this sector had passed various critical stages through the path. In
that time, we learned about child labor in 1994, and in 1995 we made our
garments industry free from child labor very successfully.
Present Situation of RMG Sector in Bangladesh:
The quota system was a great blessing for establishing our garments industry. We
were strongly benefited from using that. As a result, we can see a matured
garments industry today. But while the quota system was approaching an end in
2004, there are so many who got upset about the RMG sector of Bangladesh.
Though in the latter it can’t be affected here as the experts seemed. We
conquered the post-quota challenges and made that a successful story.
In the RMG sector of Bangladesh, there are more than 5000 garment factories
(private statistics) at the current time, employing more than 12 lack laborers,
where 85% of the labor force is women. But, according to BGMEA the number of
garment factories in Bangladesh around 4000. Now, the RMG industry is the
countries largest export earner with a value of over $24.49bn of exports in the
last financial year. It’s great news for us that Bangladesh is clearly ahead of other
South Asian suppliers in terms of the capacity of the ready-made garments
industry.
Though, there are various types of garments are manufactured in Bangladesh, but
all the ready-made garments are classified into two broad categories, where one
is woven products and another one is knitted products. Woven products include
Shirts, Pants, and Trousers. On the other hand, the knitted product includes T-
Shirts, Polo Shirts, Undergarments, Socks, Stockings, and Sweaters. Woven
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garments still dominate the export earnings of the country. From the BGMEA
website, it’s seen that Day by day knitted items production is increasing at a
considerable rate and now about 40% export earnings have been achieved from
knitted products.

Contribution of RMG Sector to the National Economy:

The role RMG sector in Bangladesh’s economy is remarkable. It’s seen that, from
the last decade, the RMG sector contributes to the national economy at a
considerable rate. About 76% of the total export earnings come from the RMG
sector. From statistics, it’s known that in FY 2003-04 RMG sector of Bangladesh
earned US$ 5,686.06 million, in FY 2004-05 the value was US$ 6,417.67.67 million,
in FY 2005-06 the value was US$ 7900.80 million, in FY 2006-07 the value was US$
9,211.23 million, in FY 2007-08 the value was US$ 10,699.80 million, in FY 2008-09
the value was US$ 12.35 billion and finally in FY 2013-14 the value stands at
$24.49billion.
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Features of trade unions :

1. It is an organizationa formed by employees or workers.
2. It is formed on a continuous basis. It is a permanent body and not a casual or
temporary one.
3. It is formed to protect and promote all kinds of interests –economic, political
and social-of its members. The dominant interest with which a union is concerned
is, however, economic.
4. It includes federations of trade unions also.
5. It achieves its objectives through collective action and group effort .

Objectives of Trade Union:

1. To improve the economic lot of employees by securing for them better
wages.
2. To secure better working conditions for the workers.
3. To secure bonus for the employees from the profit of the concern,
4. To resist schemes of the management which reduce employment, e.g.,
rationalization and automation.
5. To secure welfare of employees through group schemes which give benefit
to every employee.
6. To protect the interests of employees by taking active participation in the
management.
7. To secure social welfare of the employees.
8. To secure organizational stability, growth, and leadership.

Functions of Trade Unions ;

Militant Functions. One set of activities performed by trade unions leads to the
betterment of the position of their members in relation to their employment. The
aim of such activities is to ensure adequate wages, secure better conditions of
work and employment, get better treatment from employers, etc. Fraternal
Functions. Another set of activities performed by trade unions aims at rendering
help to its members in times of need, and improving their efficiency. Trade unions
try to foster a spirit of cooperation and promote friendly relations and diffuse
education and culture among their members.
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Another broad classification of the functions of unions may be as follows

 Intra-mural activities. These consist of those functions of the unions that lead
to the betterment of employment conditions such as ensuring adequate wages
and salaries, etc. for which the methods adopted may be collective bargaining,
negotiations, strikes, etc.
 Extra-mural activities. These activities help the employees to maintain and
improve their efficiency or productivity, e.g., measures intended to foster a spirit
of cooperation, promote friendly relations, and diffuse education among
members and various other types of welfare measures.
Employer’s attitude to labour union:
the relation between workers and unions as well as workers’ attitudes and
behaviors to the unions are important determining factors in representation crisis
trade unions experience. Thus, it is necessary that the relation of unions both with
their members and potential members should be examined. However, it is
necessary to state that quality of these relations is affected by macro and
organizational factors.

Employers were facing many difficulties towards labour union. Such problems
create negative effects.

Inequality and uncertainty created by migration and economic crisis which have
increased as a result of new liberal policies after 1980 strengthen fatalist, skeptic
and introvert individual perception and increase alienation of individuals to
society. Many reasons such as difficulty of social movement opportunities,
prolongation of lawsuits in judicial process, corruptions in public administration,
weakening of social policies have increased individuals’ lack of confidence in
collective organizations and each other.

But most of the employers were given their opinion positively about labour union.
Some of them badly needed this facility.

Many labour movement occur in many times for trade trade union.
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From the beginning of 80’s a new non-traditional industry, Garments Industries

has emerged. And now the growth of employment there nearly 13 lakh and work
force mostly are women and not organized in trade union. The employer does not
allow worker to form them trade union. Ministry of Labour is suspiciously silent
about violation of trade union rules. The government is also forbidden trade
union activities in EPZ (Export Processing Zone). Now, government is having
pressure from USA and also from ILO to open up trade union activities in EPZ.

For many reason trade unions will be needed. For the workers of Bangladesh do
not have separate health care facilities like separate hospital or health insurance
for them. The proposed health policy for Bangladesh has recommended to have
separate health care system for workers in Bangladesh. For the workers of
Bangladesh do not have separate health care facilities like separate hospital or
health insurance for them. But some of workers think that if trade union exists
health care will be founded. Generally, it is believed that unions tend to raise the
wages of their members. However, some economists dispute the ability of unions
to raise the wages of workers above general market equilibrium levels.

Before union the sceneries of firm:

Compared to the total labor force in the country, the number of trade union
members is very small. From 1,160 trade unions with a membership of 450,606 in
1971 trade unions had risen

Categories Total number of Number of unions Number of

unions/federations included members

National 32 1,264 1,263,665

federation

Industrial 108 721 640,221

federation

to 6,835 with a membership of 1,904,567 in 2004. The average membership of

trade unions has declined significantly. Trade union density is 1.12 per cent of the
total labor force. The presence of trade unions in the private export-oriented
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sectors such as RMG, EPZs, shrimp exporting firms, finished leather and leather
goods is very weak. For instance, although there are more than 40 unions
representing garments workers, the level of unionization among workers is very
poor. Most trade unions in the RMG sector operate outside the factories and
therefore lack active participation of the general workers. A combination of
factors such as lack of enforcement of labor laws, inhibiting legal provisions, and
system of contract labor are responsible for reduced trade union membership in
these sectors. The workers belonging to government sectors, educational
institutions, health sector, private security services, confidential staffs, workers in
security printing press, ordinance factory, are still deprived from the right to
organize and do not have the freedom of collective bargaining. Trade unionism in
sectors such as nursing or rural electrification is banned. Government and private
owners also discourage trade unions in cement factories, re-rolling mills etc.
Furthermore, trade union leaders and members are frequently intimidated and
harassed by employers and security forces.

After union sceneries of productivity, Growth ,Profitability and Unemployment:

“Working conditions and workers’ rights issues are receiving high priority in
Bangladesh; The responses by the Government, the RMG industry, and workers’
organizations to recent tragedies in Bangladesh RMG sector are cause for
measured optimism,” With trade union it was seen that much benefits are
located. There are change in productivity ,growth ,profitability, wages,
unemployment.

There are around 120 registered garment trade unions in Bangladesh.56

Bangladesh’s largest and most important trade union for the garment sector is
the National Garment Workers’ Federation (NGWF) which has 27,000 members,
mostly women. 57 Other trade unions are a.o.: IndustriAll Bd IBC, BIGUF, BGIWF,
Garment Workers Unity Forum (GWUF), Garment Workers TU Center and Pana
Plaza Garment Workers Union. Other organisations active around the garments
workers issue are: BILS (Bangladesh Institute of labour Studies), BLAST (legal aid),
Sromik Nirapotta Forum (Workers Security Forum), Activist Anthropologists.
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Trade union and Unemployment:

In theory, trades unions can push wages above the equilibrium wage rate. This
rise in real wages can lead to less employment. However, the impact of unions on
employment rates is not certain. As seen above – it depends on the employer. If a
firm has monopsony power, then the monopsony can restrict labour and lower
wages. In this case, a trade union can provide a counter-balance to the
monopsony power of an employer. Even if labour markets are competitive –
demand may be quite inelastic, meaning higher wages would not cause much
decline in employment. Efficiency wage theory. This states higher wages can lead
to increased productivity. Productivity deals. A trade union may be able to
bargain for higher wages in return for improving working practices and
implementing higher productivity. Because labor unions traditionally seek to raise
the income of workers, they may increase the share of national income received
by labor and conversely reduce the share received by capital, and this change in
the factor distribution of income may help, at least in the short run, to equalize
personal incomes. But because not all workers are union members, unions may
also widen wage inequalities between union and nonunion workers. More
individuals might also decide to leave the labor force due to distortions in the
wage structure associated with unions.

Trade union and Productivity:

Trade unions also get worker participation in the management as company

shareholders. By doing so, the workers are encouraged in sharing profit of the
company and they become a partner of the company, ensuring total involvement
of the workforce while taking decision for maximum production apart from
maintaining industrial harmony. Keeping in view the prevailing economic
conditions and global recession, the trade unions apart from protecting the
interest of the workers also look after industrial growth of the country. The
workers, as part of the management, can improve the productivity and expand
the business of the industry. This way, a new industrial relation is formed to face
the international competition. The trade unions take seriously this alarming
situation that leads to industrial disturbances contributing to more strikes and
lockouts, thereby reducing production and prosperity of the country besides
badly affecting growth rate.
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•To control the deteriorating situation and protect the workers as guaranteed by
the Constitution, I suggest the following measures:

•No employer should be allowed to employ more than 10% of workforce as

contractual labour,

This way, the trade unions provides enthusiasm and encouragement to workers
which, in turn, results in increased productivity.

Trade Unions and Wages:

The question of wages has been, and still is, the main concern of trade unions.
Labour leaders always believe that trade unions, by improving the bargaining
power of labour, can raise wages. On the other hand, the classical economists
argued that wages could be raised only at the expense of profits, and a fall in
profits, by reducing industrial activity, would reduce demand for labour. Thus
either wages must be reduced or unemployment must be faced. Trade unions,
according to this view, cannot raise wages permanently. It is also pointed out that
wages are determined by marginal productivity and the unions can have no
influence in the matter. This however, is not the whole truth.

Trade unions can raise wages in the following ways:

(i) They can ensure that labour is paid the full value of its marginal productivity.
Under perfect competition, no doubt, wages tend to equal the marginal
productivity of labour. But competition, in real world, is not perfect. Hence wages
do not come up to the marginal productivity level due to the weak bargaining
power of labour. By improving the bargaining power of labour, the trade unions
can raise wages up to the marginal productivity level.

(ii) Trade unions can improve the marginal productivity of labour itself in several
ways:

(a) They force the employer to use more up-to-date appliances and organisation,
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(b) They improve the efficiency of labour itself. This they do by fostering habits of
sobriety, thrift and honesty and by helping the younger generation to acquire
better education and training,

Advantages of Trades Unions:

1. Increase wages for its members

Industries with trade unions tend to have higher wages than non-unionised
industries. Trade unions can pursue collective bargaining giving workers a greater
influence in negotiating a fairer pay settlement.

The efficiency wage theory states that higher wages can also lead to increased
productivity. If workers feel they are getting a higher wage, they can feel more
loyalty towards the firm and seek to work for its success.

2.Counterbalance Monopsony

Power In many industries, firms have a degree of monopsony power. This means
firms have market power in employing workers. It enables firms to pay wages
below a competitive equilibrium (W2) and also employ fewer workers at Q2.
There are many cases of powerful firms making a very high level of profit, but
paying relatively low wages.

3. Represent workers

Trades Unions can also protect workers from exploitation, and help to uphold
health and safety legislation. Trades unions can give representation to workers
facing legal action or unfair dismissal.

4. Productivity deals

Trades unions can help to negotiate and implement new working practices which
help to increase productivity. For example, in wage negotiations, firms may agree
to increase pay, on the condition of implementing new practices, which lead to
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higher productivity. If the trade union is on board, then they can help create good
working relationships between the owners and workers.

5. Poor wage growth in non-unionized workforce

Modern labour markets are increasingly flexible with weaker trade unions. These
new developments in labour markets have led to a rise in job insecurity, low-wage
growth and the rise of zero-hour contracts. Non-unionized labour helps firms be
more profitable, but wages as a share of GDP has declined since 2007. Unions
could help redress the monopoly power of modern multinationals.

Disadvantage of Trades Unions:

1. Create Unemployment:

If labour markets are competitive, and trade unions are successful in pushing for
higher wages, it can cause disequilibrium unemployment (real wage
unemployment of Q3-Q2). Union members can benefit from higher wages, but
outside the union, there will be higher unemployment.

It is also argued that if unions are very powerful and disruptive, it can discourage
firms from investing and creating employment in the jobs. If firms fear frequent
strikes and a non-cooperative union, they may prefer to invest in another country
with better labour relations. For example, in the 1970s, the UK experienced
widespread industrial unrest and this is cited as a factor behind the UK's relative
decline.

2. Ignore non-members

Trades unions only consider the needs of its members, they often ignore the
plight of those excluded from the labour markets, e.g. the unemployed.

3. Lost Productivity

If unions go on strike and work unproductively (work to rule) it can lead to lost
sales and output. Therefore their company may go out of business and be unable
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to employ workers at all. In many industries, trade unions have created a situation
of a confrontational approach.

Impact of trade union of union in Bangladesh:

Positve impacts:

Trade union plays a major role in creating ideal working conditions.

Trade union always helps management to create better policies for workers and
to plan effective production targets.

Labors are treated fairly, only then they will maintain the working standard.

Trade unions negotiate for the standard wage and benefits with the management

Trade unions helps the management to make working environment more active
which increases the productivity as well as the profit.

Political influence’s existence makes the trade union not to interfere in

management decisions.

Trade union is hugely helping the management to cope with the competition by
motivating workers to produce more and implementing management tactics.

Negative impacts:

Trade unions creating more positions by the permission of management and

appointing more than need of workers. It’s creating surplus of manpower but not
of productivity.

Trade union of Bangladesh bargains more than they understand because of

the limitations of their knowledge. So it becomes difficult to make any decision by
consulting with the TU. If don’t consult then they strike. It is the backend support
of politics what is creating them more powerful.

Trade union leaders always try to save their interest first then the labor.
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In companies labors are awarded for good work and threatened for bad work.
But if it’s punished then t rad e union interfere and do not l et to
happen the punishment. So it increases crime of the labors.

Recommendations of trade unions:

1) Be clam: Conflict change the situation when it is unlike to be clam.

2) Always show respect : However much you disagree with someone, attack the
argument, not the person.

3)Be Magnanimous :In truth, most conflict is over Matters of little substance and
often it is mostly pride or status that is at stake.

4) Discuss or Debate: So often, conflict is created And/or Maintained because

there is no real discussion or debate.

5) Apply Rationality: Much conflict is not about substance but perception. Try to
clear through the perception to discover and agree on how things really are.

6) Be aware of Displacement: Especially where anger is concerned, sometimes

the source of a conflict is not what it appears to be, as anger is displaced.

7) Be Precise: Someone might propose that something be done, ‘Sooner rather

than later'.

8) Think creatively : Try presenting different types of solution so far rejected by

one of the parties.

9) Change the environment : It’s no coincidence that some of the toughest

political Negotiations of all the times.

10) Compromise :This is an obvious point but frequently neglected. If u do not

agree to see romantic or comedy see one the next weekend.

11)Others:

i) Consider sequencing
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Limitations:
There are also some limitations were faced during the preparation of the report.
These are:
1. Limited access into factories
2. Difficulties to communicate with factory owners
3. Time constraint
4. Unwillingness of Company owner & other respondent to disclose their identities

Conclusion:
The most common purpose of these associations or unions is
"maintaining or improving the conditions of their employment. The
trade union, through its leadership, bargains with the employer on
behalf of union members (rank and file members) and negotiates labor
contracts (collective bargaining) with employers. In perspective of
Bangladesh the immediate objectives and activities of trade unions
include protection and promotion of the interests of their members.
Regulating the relations between workers and employers or workers
and workers or employers and employers is another objective of trade
unions. Trade Union has become a necessary part but trade union can’t
run properly due to various reasons. These are lack of consciousness,
lack of utility, lack of knowledge, political influence division of trade
union. The rate of unionization has increased in the RMG sector, trade
union affiliation is low in Bangladesh compared to many other
developing countries. The main reasons for this are the fall in
employment in previously highly organized sectors, rise of the service
sector and increasing flexible types of employment relationships .Data
available indicates fragmentation and contradiction in membership of
employers and workers organization
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References:
1) Rahman, M., Mustafa, M., Islam, A. and Guru-Gharana, K.K.
2006.Growth and Employment Empirics in Bangladesh. Journal
of Developing Areas 40(1): 99-114
2) Trade unions - RMG Bangladesh (rmgbd.net)
3) Trade Unions: Objectives, Functions, Formation, Regulations,
Rights and Liabilities (businessmanagementideas.com)
4) Why unions are good for workers—especially in a crisis like
COVID-19: 12 policies that would boost worker rights, safety, and
wages | Economic Policy Institute (epi.org)
5) Assignment and Report Solution Point: Problems and Prospects of
Trade Union in Bangladesh
6) Trade unions - RMG Bangladesh (rmgbd.net)
7) Bangladesh: Garment Workers’ Union Rights Bleak, Bangladesh:
Garment Workers’ Union Rights Bleak | Human Rights Watch (hrw.org)
8) EFFECTIVENESS OF TRADE UNIONS IN PROMOTING EMPLOYEE RELATIONS IN ORGANISATIONS.
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